Attorney Fees Flashcards
If there is a dispute between an attorney and client over legal fee, who does the court side with usually?
The client gets the benefit of the doubt because most are inexperienced in dealing with fees.
A lawyer must, ________________ commencing a representation, communicate the basis or rate of the fee and the expenses for which the client will be responsible.
before or within a reasonable time after commencing a representation
True or false: Lawyer only has a one time right to discuss fees with client.
False - ongoing duty.
Is a written agreement required for general representation?
No - although encouraged
Is a written agreement required for contingent fees?
Yes
True or False: If the lawyer regularly represents the client and will be charging the same basis or rate
as in other matters, the lawyer need not communicate the fee arrangement each time
True
Is this proper: At the close of her first appointment with a new client, attorney A gave the client a simple
written memorandum. The memorandum explained that her fee would be calculated at $175
per hour, and that the number of hours could not be predicted with certainty but would probably be about 100. Later, when the matter proved more difficult than A had anticipated, A gave the client a supplemental memorandum that doubled the estimated number of hours.
Yes
Is this proper:At the end of his third appointment with lawyer L, a new client asked how L planned to
charge him for the work. L responded: “In a matter of this nature, it’s simply impossible
to tell you in advance what the fee will be. But you have my assurance that it will be a fair
fee.”
No
If a fee is unreasonable, can the attorney be punished?
Yes
What are factors courts consider when determining if a fee is reasonable?
(i) The time and labor required;
(ii) The novelty and difficulty of the questions involved;
(iii) The skill needed to perform the legal services properly;
(iv) The likelihood, if apparent to the client, that the work for this client will preclude
the lawyer from doing fee-paying work for others;
(v) The fee customarily charged in the locality for similar legal work;
(vi) The amount at stake and the results obtained for the client;
(vii) The time limitations imposed by the client or the circumstances;
(viii) The nature and length of the relationship between the lawyer and the client;
(ix) The experience, reputation, and ability of the lawyer performing the services;
and
(x) Whether the fee is fixed or contingent (a contingent fee can be higher because it
requires the lawyer to take a gamble).
Can an attorney charge for ordinary overhead expenses associated with staffing, equipping, and running the attorney’s office
No
Can an attorney charge for actual cost to the attorney of special services such as photocopying, long distance calls, computer research, special deliveries, secretarial
overtime, and the like.
Yes
Can an attorney require her fee be paid in advance?
Yes but she must refund any unearned part of the advance if she is fired or withdraws.
What is a retainer?
money that is paid solely to ensure the availability of the lawyer, and the lawyer who is fired or withdraws generally need not refund the retainer fee.
Lawyer L agreed to represent client C in a divorce case for $100 per hour. L’s written fee contract with C provided that C would pay L a $2,500 “nonrefundable retainer”
and that the retainer would be “credited against C’s charges.” C fired L after L did
$1,000 worth of work on the case, but L refused to refund any part of the retainer. Is this proper?
No
L must refund $1,500 to C; the fee contract does not clearly explain the meaning of
“nonrefundable retainer,” and it ought to be construed against L, who drafted it.
True or False: A lawyer can accept property in return for services.
True but can be subject to scrutiny if it appears to be related to property involved in case or a transaction between lawyer and client
